Car Lease during Ch13

[EmergencyF]

I have 8 months left in my 60 months. Need a better car. I really don't want go through the approval process to buy a new or used car.
How about lease? Do I need to get approval to lease a new or used car? Is there any limitation in leasing?

Will appreciate any advice.

Thanks

[justbroke]

I think it would be difficult to obtain a "new" lease in an active bankruptcy. I highly suggest that debtors, entering a 3-5 year Chapter 13, purchase a new or newish vehicle to make it through the Chapter 13. Although you could get court approval to purchase a car (incur debt) while in an active Chapter 13, it could be extremely difficult to find anyone that would give you a loan.

[EmergencyF]

Thanks for the reply. Unfortunately I did not think about this when I filed.
If I find a company who might be willing to lease, do I need a court approval for the lease?

[sophieanne]

I could be wrong but I believe so as you're incurring new debt. You could call and ask your attorney -- (just a question of curiosity).

[lebt2006]

I wouldn't lease anything, even if given the option and approval. The interest rates of most leases will eat you alive. You would be better off taking your chances on financing a nicer used vehicle. At least you can somewhat control the terms in financing versus leasing..

[Barbisi]

I have never had a car lease (although we did foolishly buy our current house with a solar panel lease which will make selling this house much harder in 2022 when this BK13 should end.)Unfortunately, we didn't realize we should have bought a car before filing; my car now has over 200k miles on it and no longer has working speakers and the air conditioner may stop working just in time for Colorado's hot and dry summer! It will be 18 years old when this comes to an end. Luckily I only need a car to drive to some medical appointments and the gym. BK13 put me in semi -permanent early retirement so I'm not working.
My advise: hang on till you get through the closing : you should qualify for much better rates (as I understand it) and you won't need the permission of the trustee any more.